The report found while aspects of the immediate recovery phase are well coordinated there is not enough emphasis on renewing the economic drivers in affected communities.

RAI spokesman Jack Archer says in the case of Cardwell, which was hit by Cyclone Yasi in 2011, major infrastructure was destroyed leading to significant loss of investment in the area.

"That can really set the community back and can push the recovery time line out significantly," he said.

He says there needs to be less focus on returning towns to "normal" and more emphasis on long-term economic stability.

Mr Archer says upgrading infrastructure should be a key priority.

"When we're putting our money back into infrastructure, if we don't think enough about the local economy and what it needs to get started and thrive in the future, then we can get the timing wrong and we can put our investment in the wrong places," he said.

"In the long-term, we really need to enable the community to take over.

"We need to not forget about communities after one or two years and think it's all done and dusted, because that's not the case."

Excessive media focus hinters long-term recovery

The report also found extensive media coverage of communities hit by natural disasters hinders rather than helps the long-term recovery process.

It found excessive media focus on the extent of the town's destruction gives the perception it has been wiped off the map.

Mr Archer says in the case of Cardwell, it also deterred important economic drivers like tourism and investment.

"That ongoing stigma of a place that's been devastated can really hurt their ability to get back out their and get people back to the community," he said.

"The main finding is really needing to put that economic-business side of recovery more strongly in the frame of how we handle things.

"Immediately after a disaster, some things can happen which really further undermine the economy - not getting businesses up and running again, and that leading to a loss of jobs and people having to leave the area."

Concerns vouchers draw business away from local operators

The report also raised concerns some relief efforts drew business away from local shops in Cardwell, with residents given Woolworths vouchers when there was no Woolworths in the town.

But Cassowary Coast Mayor Bill Shannon says the scheme should not be criticised.

"They knew very well that there was no local Woolworths in Cardwell, but there is in Innisfail and there is in Mission Beach," he said.

"If they weren't going to give out vouchers to Cardwell simply because there's not a close-by Woolworths when the vouchers would have a life of many months, I would I think be a travesty.

"I certainly don't want to have anything but the highest praise to the Salvation Army and Woolworths for their generosity."